[1945] "The position of the Chinese government and people on the Taiwan question is consistent, and resolutely safeguarding China’s national sovereignty and territorial integrity is the firm will of the more than 1.4 billion Chinese people," Chinese ruler Xi Jinping told President Joe Biden during their phone call on July 28, according to the Chinese foreign ministry. "The public opinion cannot be defied. Those who play with fire will perish by it."
"Perish"?
Xi’s dire-sounding warning, issued in connection with reports that House Speaker Nancy Pelosi plans to go to Taiwan, suggests either that Xi Jinping perceives Biden to be so weak that he can push him around or that China’s internal problems are so severe that the Communist Party must create an external crisis to distract the Chinese people. In the worst case, both are true.
For about a decade, Chinese leaders have believed the United States has been in terminal decline, and their regime will soon ascend to global dominance.
Biden, at least in their minds, has confirmed this view. His calamitous withdrawal from Afghanistan and his failure to stop Russia’s invasion of Ukraine left Beijing thinking that it can now do what it wants to Taiwan.
At the same time, Xi’s threat could be the result of regime insecurity. He needs an external crisis so that the Chinese people won’t think too much about the internal ones. Inside China, coronavirus continues to infect the population, and Xi’s "dynamic zero-COVID" policy is causing widespread resentment as well as undermining the ailing economy.
China’s economy, despite the report of 0.4% year-to-year growth in the second quarter, is almost certainly contracting.
At the same time, the debt crisis, delayed for more than a decade, has been hitting the country. Evergrande Group and other large property developers are defaulting on bond and other obligations, apartment projects remain unfinished, buyers of flats are participating in a nationwide "mortgage boycott" by not paying banks, the boycott has spread to suppliers of the developers, and financial institutions across the country are tight on cash. There are bank runs, especially in Henan province, but banks in the financial capital of Shanghai are also in poor condition. 
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